Birla Sun Life Mutual Fund has launched the Birla Sun Life Resurgent India Fund – Series 3, a close-ended equity scheme with tenure of 3.5 years. The New Fund Offer (NFO) opens for subscription from February 23 – March 9, 2017.
Sharing the rationale behind launching this scheme, A. Balasubramanian, CEO, Birla Sun Life MF, through a press release said, “As the Indian economy surges to new heights, the government is working towards building a strong financial foundation through economic and administration reforms. We see this driving a new trend in the economy - a shift from the unorganized to the organized sector. Reforms such as demonetization, digitization, and the implementation of GST will add a strong tailwind for serious gains by companies in the organized sector. Our NFO looks to provide investors a good opportunity to benefit from companies which stand to appreciate in the long run, and gain from the turnaround in the Indian economy over the 3.5-year horizon.”
The scheme aims to generate capital appreciation by investing primarily in equity and equity-related securities that are likely to benefit from recovery in the Indian economy. Around 80-100% of assets would be allocated in equity and equity related securities, and 0-20% in money market and debt instruments. “The Fund Manager will pick stocks across businesses or sectors that are closely correlated to the Indian economic growth and could become potential leaders in their respective fields in the future. The scheme will book profits at opportune moments to take advantage of the volatility in the market. It may also invest a small portion of its corpus in fixed income securities including money market instruments to manage its liquidity requirements,” said the company.
The Scheme is benchmarked against S&P BSE 200 and will be managed by Satyabrata Mohanty, Senior Portfolio Manager, Birla Sun Life Asset Management Company Limited.